Here’s your morning jolt of news, insight and analysis on the global energy business. Send us tips, suggestions and complaints: EnergyJournal@wsj.com
Sign up for this newsletter: http://on.wsj.com/EnergyJournalSignup
PetroChina and Cnooc Results Plunge
The tough times for China’s oil companies appear likely to continue after two major oil drillers reported weak earnings and said they saw little room for optimism for the rest of the year, Brian Spegele of The Wall Street Journal reports.
PetroChina Co. and offshore oil explorer Cnooc Ltd. both predicted little chance of recovery in global oil prices in the second half of the year. The companies have been among the hardest hit in China from the commodities slump because of their exposure to fluctuations in global oil prices.
China’s once high-flying oil companies have been hit by a double whammy: plunging prices that make each barrel they pump less profitable, and weaker demand at home for the refined products they make, such as gasoline.
Staying with Cnooc, the Journal reports that the company’s oil reserves are fast depleting. Its most lucrative oil barrels are in China—where the reserve life of developed oil reserves, or ratio of proven reserves to production, has fallen below three years. Meanwhile the overall reserve life is at its lowest in years and one of the lowest among global peers at 8.4 years.
Seadrill: Profit Drops as Rig Rates Remain Weak
Seadrill Ltd. said it would again step up cost-cutting to counter difficult market conditions, as the Oslo-listed offshore drilling company’s net profit dropped 31% on the year amid lower rig rates and as several rig contracts ended, according to a report on Dow Jones Newswires.
Net profit fell to $260 million in the three months to the end of June from $379 million in the same period a year earlier. Revenue dropped to $868 million from $1.15 billion, mainly due to the expiration of its West Castor and West Prospero contracts and lower rates paid for some of its drilling rigs.
Russia to Boost Oil Production on Eve of OPEC Talks
Energy Intelligence reports that Russia is poised to launch a number of new fields that by the end of the year could add 26 million barrels of crude oil to the market. It adds that the situation could potentially create an added headache for the negotiators from major producers from both OPEC and non-OPEC when they convene in Algiers on Sept. 26-28.
MARKETS
Oil prices were mixed Thursday as bearish data from both the U.S. and China kept a lid on prices.
The October contract for global benchmark crude Brent was down 0.1% to $49.01 in morning trade in London, while its U.S. counterpart West Texas Intermediate recovered some of Wednesday’s losses, up 0.2% at $46.84.
According to the Energy Information Administration, U.S. oil imports were up by almost 450,000 barrels a day to 8.6 million b/d, which coupled with weaker refinery activity led to the stock build of 2.6 million barrels.
Meanwhile, in China net crude oil imports fell by just over 2% month-on-month in July, falling to 7.29 million barrels a day from 7.45 million b/d in June according to the final figures released by the country’s National Bureau of Statistics.
Oil demand also fell year-over-year by 61,000 b/d to 10.62 million b/d. Reasons cited include serious flooding across the country that hurt industrial output.
Read our latest market report at www.wsj.com
0 Response to "Energy Journal: PetroChina, Cnooc Facing Tough Times"
Posting Komentar